Economy

Analysis: even with record tax revenues, the Irish state may be spending beyond its means

The government took in €88.1bn in tax revenues last year - but its spending also increased to an unprecedented level

Paschal Donohoe, minister for public expenditure, maintains that the government will reign in its spending over the coming years. Picture: Fergal Phillips

This month 44 years ago, Charlie Haughey delivered his now infamous speech warning the Irish public to tighten their belts as the economic storm clouds gathered in 1980.

“As a community we are living way beyond our means,” the former taoiseach and leader of Fianna Fáil declared in a State of The Nation television address to the Irish people. Haughey’s speech heralded a decade of recession and austerity in Ireland during the 1980’s that predictably ...